The Santam group achieved excellent
underwriting results in 2011 despite the subdued economic
environment putting pressure on premium increases. We also
delivered solid growth of 12% on gross written premium. Investment
returns were negatively impacted by the volatility of the equity
markets and closed on lower levels than in 2010. Despite headline
earnings per share being down by 11% compared to 2010 due to the
investment return impact, a good return on shareholders' funds of
25% was achieved. Our strong capital position as at the end of
February allowed us to declare our fifth special dividend in the
past eight years.
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Weighted average return on
shareholders' funds of 25%
-
Net underwriting margin of 7.7% and net
insurance margin of 10.4%
-
Growth of 12% in gross written
premiums
-
Group solvency ratio at 48%, compared
to the target band of 35% to 45%, before payment of the special
dividend
-
Headline earnings per share of 1 216
cents compared to 1 367 cents in the prior year
-
Dividend growth of 8.8% and special
dividend of R8.50 per share declared
Over and above the excellent financial results
reported, Santam also managed to maintain its level 3 BBBEE rating
for the past three years.
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